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What drives firm and sectoral productivity in the United Kingdom and in selected European countries?

Author

Listed:
  • Eun Jung Kim
  • Annabelle Mourougane
  • Mark Baker

Abstract

This paper examines the link between barriers to trade and investment and productivity performance, in the United Kingdom and selected European countries using both firm-level and sectoral data. Barriers to trade and investment appear to be a robust determinant of productivity in the long term. Control variables such as spending on R&D and human capital also play a role, though their effects depend on the way they are measured or on the sample. The results are robust across a range of productivity measures as well as to changes in the sectoral coverage and the set of controls.

Suggested Citation

  • Eun Jung Kim & Annabelle Mourougane & Mark Baker, 2020. "What drives firm and sectoral productivity in the United Kingdom and in selected European countries?," OECD Economics Department Working Papers 1630, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1630-en
    DOI: 10.1787/36ceb723-en
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    More about this item

    Keywords

    barriers to trade and investment; firm-level; productivity; sectoral;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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